WASHINGTON (Diya TV) — The Trump administration has rolled out an ambitious plan aimed at downsizing the federal workforce and its costs, which experts say draws lessons from tech billionaire Elon Musk’s strategies for cutting costs.
Federal employees will now be given the chance to resign voluntarily with severance pay under the new plan, and this is likely to present significant savings to the government. The move aligns with President Donald Trump’s broader goal of trimming unnecessary government spending.
According to insiders, Musk, who has long been an outspoken critic of bureaucracy, had an active say in the policy. He had once introduced this very measure during his reign at Twitter, now branded as X. There, Musk sacked a considerable segment of the employees.
The Department of Government Efficiency (DOGE) in a statement claimed that the move would save the government up to $1 billion per day through the reduction of unnecessary hiring, removal of DEI programs, and halting improper payments to foreign organizations. Musk, who leads DOGE, said the savings have to increase to more than $3 billion a day for maximum impact.
It is expected that this move will affect around 10% of the federal workforce, where a number of agencies are undergoing restructuring and downsizing. The employees willing to accept the voluntary resignation offer will remain on the payroll until the end of September 2025.
